Information Papers

Nuclear Power in South Africa

(November 2008)

Electricity consumption in South Africa has been growing rapidly since 1980 and the country is part of the Southern African Power Pool (SAPP), with extensive interconnections.  A 400 MW power line serves Namibia.  Total generating capacity in the region is 49.8 GWe, of which 41.3 GWe is South African, mostly coal-fired, and largely under the control of the state utility Eskom.  Early in 2008, demand in South Africa is uncomfortably close to this.  In 2005 electricity generation was 245 billion kWh, with 2 billion kWh net exports and 198 billion kWh final consumption.  Some 94% comes from coal-fired plants and in 2006, 4.4% - 10 billion kWh - was from nuclear.

Eskom supplies about 95% of South Africa's electricity and more than 60% of Africa's.  Early in 2008 regional electricity demand is exceeding supply capacity, so that SA power exports have been curtailed while domestic demand is being managed by major cutbacks in industrial use, expected to lead to a significant decline in economic growth from the level of about 5% pa level of 2004-07.

Eskom is spending some US$ 39 billion on building new coal and gas turbine plants by 2012 - belatedly to address the current crisis, and by 2025 it expects to double its generating capacity to 80 GWe.  About half of the increment to 2025 is likely to be nuclear.

Nuclear industry development

South Africa's main coal reserves are in the north-east, while much of the load is on the coast near Cape Town and Durban. Moving either coal or electricity long distance is inefficient, so it was decided in the mid 1970s to build some 1800 MWe of nuclear capacity at Koeberg near Cape Town.

The Koeberg plant was built by Framatome and commissioned in 1984-85. It is owned and operated by Eskom and has twin 900 MWe pressurised water reactors (PWR) the same as those providing most of France's electricity.

Operating South African power reactors 

Reactors Type Net MWe First power Planned close
Koeberg 1
PWR
921
1984
  
Koeberg 2
PWR
921
1985
  
Total (2)
1842 MWe
 


While there had been no intention to build further power stations of this type, the government announced early in 2006 that it was considering building a further conventional reactor, possibly at Koeberg, to boost supplies in the Cape province.

Early in 2007 the Eskom board approved a plan to boost output to 80 GWe by 2025, including construction of 20 GWe of new nuclear capacity so that nuclear contribution to power would rise from 5% to more than 25% and coal's contribution would fall from 87% now to below 70%.  The new program will start with up to 4 GWe of PWR capacity to be built from about 2010, with the first unit commissioned in 2016.  The environmental assessment process is under way, considering five sites, and selection of technology will follow in the first half of 2008.  Areva's EPR and Westinghouse AP1000 have been short-listed. Areva is heading a consortium of South African engineering group Aveng, the French construction group Bouygues and Electricite de France which has submitted a bid to supply two EPR units. Westinghouse is matching this with a bid of three 1134 MWe AP1000 units.  The Westinghouse-led consortium includes the Shaw Group and the South African engineering firm Murray & Roberts.

Areva and Westinghouse have also offered to build the full 20 GWe - with a further ten large EPR units or 17 AP1000 units by 2025.  This would be coupled with wider assistance for the local nuclear industry, in the Westinghouse case including development of the Pebble Bed Modular Reactor (Westinghouse is an investor in the PBMR company). 

A nuclear energy policy for South Africa confirmed in June 2008 addressed growing electricity demand and the country's 87% reliance on coal for this.  Building upon 24 years of experience with nuclear power it outlines an extensive program to develop all aspects of the nuclear fuel cycle, drawing on private investment.  With uranium mining already well established, conversion, enrichment, fuel fabrication and also reprocessing of used fuel are envisaged as strategic priorities related to energy security.  Reactor technology will be PWR, while the Pebble Bed Modular Reactor (PBMR) is developed for both electricity and heat.  By 2016 the local manufacturing of nuclear components and equipment should be under way and the PBMR commercialized, all with a view to exports as well as local use.  Conversely, export of unprocessed uranium will be controlled and a strategic stockpile will be maintained.

The Nuclear Energy Corporation of South Africa (Necsa) expects nuclear capacity to increase to about 27 GWe, supplying 30% of electricity, by 2030, including 12 new large PWR units and an initial set of 24 PBMRs.

PBMR

Since 1993 Eskom (since 1999 in collaboration with others) has been developing the Pebble Bed Modular Reactor (PBMR) and is ready to build the lead unit of this design.

The PBMR draws on well-proven German expertise and aims for a step change in safety, economics and proliferation resistance. Production units will be 165 MWe and will have a direct-cycle gas turbine generator and thermal efficiency of about 41%. Some 450,000 fuel pebbles recycle through the reactor continuously (about six times each) until they are expended, giving an average enrichment in the fuel load of 4-5% and average burn-up of 80 GWday/t U (eventual target burn-ups are 200 GWd/t). The pressure vessel is lined with graphite and there is a central column of graphite as reflector. Control rods are in the side reflectors and cold shutdown units in the centre column. Performance includes great flexibility in loads (40-100%), with rapid change in power settings. Each unit will finally discharge about 20 tonnes/yr of spent pebbles to ventilated on-site storage bins.

Both construction cost (when in clusters of four units) and generating are expected to be cost competitive. 

In 2003 environmental approval was given for construction of the demonstration PBMR unit at Koeberg and the fuel plant at Pelindaba near Pretoria. In October 2004 the South African government budgeted to allow development of the first PBMR to proceed. This was seen as conditional approval for the demonstration unit at Koeberg.

The Brayton cycle turbine design has been simplified from 3-shaft vertical to single shaft horizontal configuration.

This change plus a successful procedural appeal on the environmental clearance resulted in the Department of Environment Affairs recommending a new environmental impact assessment, which was commenced in August 2005 and remains unfinished.  Public hearings will be held in October 2008 and a Record of Decision from the Department of Environmental Affairs is expected in the second half of 2009.

PMBR Ltd has been seeking a further international equity partner in the venture. After the demonstration pilot plant is in operation, the South African government has said that it wants to order 24 or more units totalling at least 4000 MWe. One quarter of South Africa's new-built nuclear electricity is envisaged from PBMRs.

A shareholders' agreement for the PBMR project was struck in 2005 among Eskom (41%), the South African Industrial Development Corporation (IDC, 14%), the SA government (30%) and the US company Westinghouse (15%), now owned largely by Toshiba. These shares were expected to move to 5%, 15%, 30% and 4% respectively by 2012, with 46% being held by another investor. However in August 2006 the agreement expired due to a delay in licensing, and PBMR Ltd reverted 100% to Eskom. A new agreement is being negotiated and Pebble Bed Modular Reactor (Pty) Ltd's current funding is principally from the South African government.

It is now envisaged that construction of the first PBMR in South Africa will begin in 2010, with fuel loading expected in 2014.

In April 2005 the PBMR company awarded a US$ 20 million contract to Uhde, a local subsidiary of Germany's Thyssenkrupp Engineering, to build a plant at Pelindaba near Pretoria to manufacture the fuel pebbles for the planned demonstration PBMR. The fuel plant is expected to be completed by 2010 but has been delayed by regulatory issues.

In August 2008, a contract was awarded to the joint venture company Murray & Roberts SNC-Lavalin Nuclear (Pty) Ltd for the provision of engineering, procurement, project and construction management (EPCM) services for the demonstration plant at Koeberg.

In the USA, the company is planning to submit a design certification application for the reactor in 2008, and to bid for a nuclear-powered thermochemical hydrogen production plant at the Idaho National Laboratory.

Uranium mining

Uranium production in South Africa has generally been a by-product of gold or copper mining. In 1951 a company was formed to exploit the uranium-rich slurries from gold mining and in 1967 this function was taken over by Nuclear Fuels Corporation of South Africa (Nufcor), which in 1998 became a subsidiary of AngloGold Ltd. It produces over 1000 tonnes U3O8 per year from uranium slurries trucked in from various gold mines and Palabora copper mine.

In 2006 Uranium One obtained its mining right for the Dominion Reefs project, 150 km southwest of Johannesburg.  Production commenced early in 2007 and was planned to increase to 1730 t/yr U3O8 by 2011. Production cost was earller expected to be US$ 14.50/lb U3O8 from the conglomerate reefs to 500 metres depth, but has evidently increased well beyond this.  The first sales contract for 680 tonnes was announced in November 2006. 2007 production was 78 tonnes and that for 2008 was expected to be 145 tonnes U3O8, reflecting slower and more difficult underground development than anticipated.  The new order mining right incorporates black empowerment targets for employment. Dominion has indicated resources of 51,000 tonnes U3O8 at 0.063% and inferred resources of 62,800 tonnes U3O8 at 0.036%. Within these, reserves however are only 14,240 tonnes at 0.077% and US$ 46.50/lb production cost.  The mine was closed in October 2008 due to a labour dispute coupled with power shortages and increased project costs in the context of lower uranium spot prices.  Uranium One then announced the mine would be put on care and maintenance pending a possible sale.

In February 2007 UraMin Inc increased its stake in the Ryst Kuil uranium project in the central Karoo Basin on the border of East and West Cape provinces to 74%. The company was then taken over by Areva. The deposit was discovered by Esso in the 1970s. Some 19,000 tonnes U3O8 resources (16,000 tU) are estimated on historic basis at 0.1% grade, and two further leases under application will lift this to 29,000 tonnes (24,600 tU). Mine production of 1350 t U3O8 per year is projected by the end of 2009. A full feasibility study was due to be completed in March 2008.

First Uranium Corp of Canada, is building a US$ 55 million uranium processing plant at Ezulwini mine, which has 2600 tU in measured and indicated resources and 84,000 tU inferred resources.  The plant is due to be commissioned in February 2009.  The mine earlier produced over 6000 tU from 1960s to 2001.

First Uranium is building a larger $260 million plant at the Buffelsfontein mine which has some 18,000 tU in measured and indicated resources in old mine tailings (MWS project).  Uranium production is expected to be 600 tU/yr over 16 years, ramping up from the end of 2008.  Both plants are in the Klerksdorp area southwest of Johannesburg and in 2008 the company announced plans to build an acid plant using pyrite from MWS and 30 MWe of power generating capacity to service the two operations.

Nearby, Newco is being spun off from Harmony Gold Mining Co and is reopening part of the Randfontein mine which produced uranium in the 1980s.  It has identified JORC-compliant resources of some 41,000 tU both in tailings and underground.  This includes probable reserves of 15,200 tU in the Cooke tailings.  Production at 1000 tU/yr is envisaged.  Pamzodi Resources, South Africa's largest private equity fund, agreed to take a 60% share in the new company for $420 million, but in the light of lower uranium process this was reduced to $348 million.

The Henkries uranium project is being explored by Namakwa Uranium, which is now owned 74% by Niger Uranium and 26% by the company's black economic development partner, Gilstra Exploration.  Anglo American did a feasibility study on the project in 1979.

Fuel cycle, R&D

Originally fuel for Koeberg was imported, but at the height of sanctions the Atomic Energy Corporation (AEC) was asked to set up and operate conversion, enrichment and fuel manufacturing services for Koeberg. These have now been closed down.

Enrichment was undertaken at Valindaba, 60 km north of Johannesburg from the 1970s to 80s when the country was subject to trade sanctions, by a unique aerodynamic Helikon vortex tube process developed in South Africa, based on a German design. The Y-plant enriched up to 45% for research reactor and military use, the Z-plant supplied low-enriched uranium for Koeberg. Since this was not economic, operations ceased in 1990 and 1995 respectively. The semi commercial plant was of 300,000 SWU/yr capacity. Both centrifuge and molecular laser isotope processes were being explored through to 1997.

The AEC became the Nuclear Energy Corporation of South Africa (Necsa), which was established as a public company under the Nuclear Energy Act, 1999 and is wholly-owned by the State. Its main functions are to undertake and promote research and development in the field of nuclear energy and radiation sciences and technology, and to process source material, special nuclear material and restricted material. Apart from its main operations at Pelindaba, Necsa is also responsible for radioactive wastes.

Eskom now procures conversion, enrichment and fuel fabrication services on world markets. The 2007 draft nuclear energy policy outlined an extensive program to develop all aspects of the nuclear fuel cycle, including a return to conversion, enrichment, fuel fabrication and also reprocessing of used fuel as strategic priorities related to energy security. A new 5.0 to 10.0 million SWU centrifuge enrichment plant built in partnership with Areva, Urenco or Tenex is envisaged, the larger version allowing scope for exports.

However, Klydon Corporation emerged from AEC and is now developing the Aerodynamic Separation Process (ASP) employing similar  so-called stationary-wall centrifuges with UF6 injected tangentially.  It is based on Helikon but pending regulatory authorisation from NECSA it has not yet been tested on UF6 - only light isotopes such as silicon.*  Projections for ASP give an enrichment cost under $100/SWU, with this split evenly among capital, operation and energy input, making it a very low-cost technology in respect to capital, and with very small modules being economic.  Klydon Element 92 Division is focused on uranium prospects, while its Stable Isotopes Division is concerned with silicon-28, zirconium-90 and medical isotopes.
* Extrapolating from results there it is expected to have an enrichment factor in each unit of 1.10 (cf 1.03 in Helikon) with about 1000 kWh/SWU.  Development of it is aiming for 1.15 enrichment factor and less than 500 kWh/SWU (compared with about 10,000 kWh/SWU in the Z-plant).

In August 2008 the nuclear chief director of the Minerals and Energy department announced that Eskom would seek commercial arrangements to reprocess its used fuel overseas and utilize the resulting mixed oxide (MOX) fuel.  A National Radioactive Waste Management Bill was before parliament.

Since 1965 the AEC/Necsa has operated a 20 MW tank-type research reactor - Safari-1 - at the Pelindaba nuclear research centre. Since 1981 it used 45% enriched fuel elements manufactured locally from locally-enriched uranium, though the pilot enrichment plant producing this closed in 1990.  It is the main supplier of medical radioisotopes in Africa and can supply up to 25% of the world's molybdenum/technetium needs.

Radioactive Waste Management

In 2005 the SA Radioactive Waste Management Policy and Strategy was set out.

Necsa operates the national repository for low and intermediate-level wastes at Vaalputs in the Northern Cape Province. This was commissioned in 1986 for wastes from Koeberg and is financed by fees paid by Eskom.

Some low and intermediate-level waste from hospitals, industry and Necsa itself is disposed of at Necsa's Pelindaba site.

Spent fuel is stored at Koeberg.

Decommissioning of two uranium enrichment plants was undertaken by Necsa and financed from state grants.

Regulation and safety

In 1948 the Atomic Energy Act created the Atomic Energy Corporation (AEC). In 1963 the Nuclear Installations Act provided for licensing and in 1982 the Nuclear Energy Act made the AEC responsible for all nuclear matters including enrichment. An amendment to it created the autonomous Council for Nuclear Safety, responsible for licensing.

The Nuclear Energy Act of 1999 gives responsibility to the Minister of Minerals & Energy for nuclear power generation, management of radioactive wastes and the country's international commitments. The Nuclear Energy Corporation of South Africa (Necsa) is a state corporation established under the Act.

The National Nuclear Regulator Act of 1999 sets up the National Nuclear Regulator (NNR) -previously the Council for Nuclear Safety - covering the full fuel cycle from mining to waste disposal. It is focused on health and safety.

The Department of Minerals and Energy (DME) has overall responsibility for nuclear energy and administers the above Acts.

The Department of Environmental Affairs is responsible for environmental assessment of projects, and now has a cooperative agreement with the National Nuclear Regulator for nuclear projects.

Non-proliferation 

South Africa is a party to the Nuclear Non-Proliferation Treaty (NPT) as a non-nuclear weapons state. Its safeguards agreement under the NPT came into force in 1991. It is member of the Nuclear Suppliers' Group. In 2002 it signed the Additional Protocol in relation to its safeguards agreements with the IAEA, and this is in force.

When South Africa acceded to the NPT and concluded a comprehensive safeguards agreement with the IAEA in 1991, it submitted a report on its nuclear material subject to safeguards and asked the IAEA to verify the conclusion of its weapons program. Between 1979 and 1989 South Africa had built and then dismantled a number of nuclear weapons based on uranium enriched to about 80% U-235. In 1995 the IAEA was able to declare that it was satisfied all materials were accounted for and the weapons program had been terminated and dismantled.

References:
IAEA 2002, Country Nuclear Power Profiles
AEC Review 1990
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